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The Value of Avoiding a Lulu: Hazardous Waste Disposal Sites

V. Kerry Smith and William H. Desvousges
The Review of Economics and Statistics
Vol. 68, No. 2 (May, 1986), pp. 293-299
Published by: The MIT Press
DOI: 10.2307/1925509
Stable URL: http://www.jstor.org/stable/1925509
Page Count: 7
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The Value of Avoiding a Lulu: Hazardous Waste Disposal Sites
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Abstract

This paper develops and estimates a demand model to describe a household's demand for distance from a landfill with hazardous wastes. This model provides one basis for gauging the intensity of a household's desire to avoid living near this type of facility. Using the conceptual framework of a hedonic property value model to provide the basis for demand for distance questions, a survey in suburban Boston elicited this information from 609 households. The demand estimates imply that the average household would realize a consumer surplus between 330 to 495 annually for each mile between its residence and a landfill containing hazardous waste.

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